Village Funds in Yogyakarta Drastically Cut, DPRD Member Calls it 'Deforestation'
The reduction of Village Funds in the 2026 budget for the Special Region of Yogyakarta has reached a drastic level. On average, the budget received by villages in the four districts has decreased by 74% compared to the previous year.
Chairman of Commission A of the Yogyakarta DPRD from the PDI Perjuangan faction, Eko Suwanto, called the policy a major blow to villages. “This is not just a cut, but a deforestation of the budget,” said Eko on Wednesday, February 26, 2026.
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Eko detailed that Village Funds in Kulon Progo Regency decreased by about 71%, Bantul by 78%, Sleman by 75%, and Gunungkidul by 71%. On average, the decrease reached 74%.
Several villages that received an allocation of around Rp 733 million in 2025 now only receive around Rp 272 million. This decrease is considered to potentially hinder village infrastructure development, the agricultural sector, and social assistance programs for poor residents.
Considered Contrary to the Village Law
Eko believes that the policy contradicts the spirit of Law Number 6 of 2014 concerning Villages, which places villages as the center of development, public services, and economic empowerment. According to him, waves of rejection are coming from village officials to the community. They urge the central government to cancel the policy and restore the allocation to at least the same level as the previous year. “Good governance needs to be improved, but not by cutting the budget so drastically,” he said.
On the other hand, the Yogyakarta Regional Government still allocates Special Financial Assistance (BKK) of Rp 301.3 billion in 2026, as stipulated in Regional Regulation Number 3 of 2024, which affirms that villages and urban villages are centers of public services and economic empowerment. However, Eko believes that this additional regional budget is not enough to cover the impact of the Village Fund cuts from the center. Moreover, villages have only just begun to recover from the economic pressures after the Covid-19 pandemic since 2024.
Potentially Trigger New Poverty
Vice Rector for Student Affairs, Community Service, and Alumni at Gadjah Mada University, Ari Sujito, warned that the cuts in Village Funds could trigger new poverty in rural areas. According to Ari, Village Funds are the inherent right of villages with the principles of recognition, authorization, and redistribution as mandated by the constitution and implemented in the Village Law. “Every change in the allocation of Village Funds should be consulted with parliament first. This is not a trivial matter because it has a direct impact on the lives of village communities,” he said. He also highlighted the increasing tendency of ministry programs being included in the Village Fund scheme. If Village Funds only become an instrument for financing central programs, Ari said, the essence of the Village Law will be eroded. “If this practice continues, villages could potentially experience serious setbacks, even bankruptcy in development planning,” he said. Ari urged the Ministry of Villages to review the policy and asked villages to firmly fight for their rights in accordance with the principles of the Village Law. Editor’s Choice: Village Funds for Red and White Cooperatives Violate the Law